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Dateline:

Public Company Information:

NYSE:

SCHW

SAN FRANCISCO--(BUSINESS WIRE)--The Charles Schwab Corporation announced today that its net income for
the fourth quarter of 2016 was a record $522 million, up 4% from
$503 million for the prior quarter, and up 25% from $416 million for the
fourth quarter of 2015. Net income for the twelve months ended
December 31, 2016 was $1.9 billion, up 31% year-over-year.

Three Months Ended

Twelve Months Ended

December 31,

%

December 31,

%

Financial Highlights

2016

2015

Change

2016

2015

Change

Net revenues (in millions)

$

1,972

$

1,691

17

%

$

7,478

$

6,380

17

%

Net income (in millions)

$

522

$

416

25

%

$

1,889

$

1,447

31

%

Diluted earnings per common share

$

.36

$

.28

29

%

$

1.31

$

1.03

27

%

Pre-tax profit margin

41.8

%

38.1

%

40.0

%

35.7

%

Return on average common stockholders’ equity (annualized)

14

%

13

%

14

%

12

%

EPS Impact of Certain Non-Recurring Items

Net litigation proceeds (1)

$

-

$

.03

$

.01

$

.04

Net tax benefits (2)

$

-

$

.01

$

-

$

.02

Note: All per-share results are rounded to the nearest cent, based
on weighted-average diluted common shares outstanding.

(1)

Net litigation proceeds include $57 million in the fourth quarter of
2015, and $16 million and $75 million in full-year 2016 and 2015,
respectively, relating to the company’s non-agency residential
mortgage-backed securities (RMBS) portfolio, which are included in
Other revenue.

(2)

Net tax benefits include $15 million in the fourth quarter of 2015
and $29 million for the full year, relating to certain current and
prior-year matters, which are included in Taxes on income.

CEO Walt Bettinger said, “Schwab achieved truly noteworthy results in
2016 by sustaining our ‘Through Clients’ Eyes’ strategy and working to
earn our clients’ trust every day. During the year, from disappointing
economic news early on, to the disruption of the Brexit vote, and then
through the tumult of the presidential election, clients could trust
that Schwab stood ready to help them navigate market volatility, and
they made active use of our full-service capabilities. Our financial
consultants held planning conversations with approximately 132,000
clients last year, up 18% from 2015. Client assets enrolled in one of
our retail advisory solutions and those guided by independent advisors
totaled $1.40 trillion at the end of 2016, up 12%. New and existing
clients brought $125.5 billion in core net new assets to Schwab during
2016, marking a 5% annual organic growth rate and the 5th
consecutive year over $100 billion. Net new assets in our Retail and
Advisor Services businesses rose by 10% and 21%, respectively, over the
prior year, while Mutual Fund Clearing and Retirement Plan flows slowed
due to client turnover. Total client assets at year-end were a record
$2.78 trillion, up 11%. We closed out 2016 serving more clients than
ever, including 10.2 million active brokerage accounts, 1.1 million
banking accounts and 1.5 million retirement plan participants, increases
of 4%, 7% and 2%, respectively.”

Mr. Bettinger continued, “As Schwab continues to offer more value and a
better investing experience, new and existing clients choose to entrust
us with more of their assets, fueling our financial performance. Our
revenues rose 17% to a record $7.5 billion in 2016. On the expense
front, we entered the year with goals that allowed for needed growth in
our infrastructure and increased reinvestment to better serve clients
while still delivering improved profitability. We kept to those goals
through the ups and downs of 2016, which helped us increase net income
by nearly a third over our 2015 performance, to a record $1.9 billion.”

Mr. Bettinger added, “Our work to challenge the status quo on behalf of
our clients continued across multiple fronts in 2016. We expanded and
enhanced our Schwab OpenView Gateway® and Schwab Advisor
Center® platforms to help the independent advisors who
custody with us operate more efficiently and stay focused on serving
their clients. We introduced Schwab Intelligent Advisory® as
an extension of our contemporary, full-service approach to helping all
individual clients build and manage their wealth. Schwab Intelligent
Advisory is designed to be broadly accessible with a low balance minimum
and fee, combining personalized financial and investment planning
through CFP® professionals with automated and diversified
portfolio management through Schwab Intelligent Portfolios®.
As part of our commitment to offering more value to investors, we
launched the Schwab Target Index Funds, a new series of target-date
mutual funds constructed with Schwab ETFs that are designed to be the
lowest cost of their kind available to employer-sponsored retirement
plans and retail investors.* We also expanded Schwab ETF OneSource™ by
16 net new funds in 2016, enabling Schwab clients to choose from a total
of 228 ETFs covering 69 Morningstar categories, all for $0 online trade
commissions. In addition, we introduced the Schwab Live hub to provide
traders with centralized access to the interactive and live content we
offer to help them succeed. We also continued our work to make it easier
to establish a relationship with a locally-based investment professional
by extending our footprint across the country – we added 3 new company
branches and 5 new independent branches during the year.”

CFO Joe Martinetto commented, “Schwab’s 2016 performance is a clear
example of the company’s financial formula again working as designed:
solid business growth driving solid revenue growth through diversified
sources, leading to improved profitability through continued expense
discipline. We expanded client assets by 11% during an environment that
had some rough patches but ultimately included improving economic
conditions, positive equity market returns and, at long last, the second
small step by the Federal Reserve away from its zero interest rate
policy of recent years. We achieved 17% revenue growth by generating
record levels of net interest revenue and asset management and
administration fees, which more than offset lower revenue from trading
and the conclusion of certain litigation. Net interest revenue rose 32%
to $3.3 billion due to a strong increase in client cash sweep deposits
and higher short-term interest rates. Asset management and
administration fees rose by 15% to $3.1 billion largely due to higher
money market fund management fees relating to the rate environment and
continued lift in client assets enrolled in one of our retail advisory
solutions. Higher rates provided breathing room for our increased
investment in people and technology, resulting in 9% expense growth for
2016. This increase more than doubled our constrained 2015 increase but
still allowed for a 780 basis point gap between revenue and expense
growth and a record 40% pre-tax profit margin, beating the prior
high-water mark set in 2008.”

Mr. Martinetto concluded, “We remain focused on managing the company’s
balance sheet to support growth initiatives and further our strategy of
optimizing the spread earned on client cash sweep balances. We completed
approximately $8 billion in bulk transfers to Schwab Bank during 2016,
including approximately $4 billion in the fourth quarter. These
transfers, along with growth in bank deposits from our ongoing asset
gathering, helped increase interest-earning assets on our balance sheet
by 22% during 2016 to $216 billion at year-end. We supported this growth
with capital generated through earnings and the issuance of
approximately $1.4 billion in additional preferred stock. As part of
managing Schwab’s capital levels, we maintain a target range for common
stock dividends equal to 20-30% of earnings; consistent with our
improving earnings picture, we increased our quarterly cash dividend by
17% during the year, to $0.07. We ended 2016 with a preliminary Tier-1
Leverage ratio of 7.2% and a full-year return on equity of 14%, the
highest in seven years. Our solid capital position and healthy returns
position Schwab to continue investing for profitable growth and sharing
the benefits of our scale with clients while building long-term
stockholder value.”

Business highlights for the fourth quarter (data
as of quarter-end unless otherwise noted):

Investor Services

New retail brokerage accounts for the quarter totaled approximately
182,000, up 21% year-over-year; total accounts were 7.1 million, up
3% year-over-year.

Held financial planning conversations with approximately
32,000 clients during the quarter, up 10% year-over-year.
Approximately 132,000 planning conversations were held in 2016, up 18%
from the prior year.

Opened two company branches in Brookfield, WI and Aspen, CO and opened
two independent branches in Gainesville, FL and Peoria, IL. Schwab has
over 335 branches across the country that offer clients access to a
range of investing and personal finance guidance, services, and
products.

Graduated the second class of FC Academy, a 24-month development
rotational program preparing recent college graduates for a career in
one of our branch offices.

Graduated the second class of FC University, a 10-week onboarding
program that prepares new hires to be successful at Schwab and
supports the expansion of our branch network.

Launched “Investing Principles” on schwab.com that outline Schwab’s
core beliefs and approach to investing. Divided into three key
components – Identify Your Goals, Get Invested, and Stay on Track
– they create a foundation for every client, no matter where they are
on their investing journey.

Advisor Services

Announced enhancements to Institutional Intelligent Portfolios®,
the automated investment management platform designed for independent
advisors. The primary update is enhanced portfolio customization,
which provides advisors greater flexibility to design portfolios based
on their investment philosophies.

Announced enhancements to Schwab Advisor Center, the custody and
trading platform for independent advisors. The platform now offers an
array of automation features and tools, along with online support,
enabling advisors and their clients to reduce paperwork and complexity.

The company also announced today that it has scheduled a Business Update
for institutional investors on Thursday, February 2, 2017. This Update
is designed to help the investment community keep abreast of recent
developments and management’s strategic focus. The program is scheduled
to run from approximately 8:30 a.m. - 12:15 p.m. PT, 11:30 a.m. - 3:15
p.m. ET. Participants will include members of the company’s executive
management. A simultaneous webcast of this Update will be accessible to
the public at http://schwabevents.com/corporation.

Forward-Looking Statements

This press release contains forward-looking statements relating to
client value and investing experience; growth in the client base and
client assets; financial performance; business growth; revenue growth;
improved profitability; expense discipline; balance sheet management;
growth initiatives; optimizing the spread earned on client cash; target
range for common stock dividends; investing for profitable growth;
sharing the benefits of scale with clients; and building long-term
stockholder value. Achievement of these expectations and objectives is
subject to risks and uncertainties that could cause actual results to
differ materially from the expressed expectations.

Important factors that may cause such differences include, but are not
limited to, the company’s ability to develop and launch new products,
services and capabilities in a timely and successful manner; the
company’s ability to attract and retain clients and registered
investment advisors and grow those relationships and client assets;
general market conditions, including the level of interest rates, equity
valuations and trading activity; competitive pressures on rates and
fees; client use of the company’s advisory solutions and other products
and services; the level of client assets, including cash balances; the
company’s ability to manage expenses; capital needs and management; the
company’s ability to monetize client assets; the timing, amount and
impact of bulk transfers; the quality of the company’s balance sheet
assets; client sensitivity to interest rates; regulatory guidance; the
effect of adverse developments in litigation or regulatory matters and
the extent of any charges associated with legal matters; any adverse
impact of financial reform legislation and related regulations; and
other factors set forth in the company’s most recent reports on Form
10-K and Form 10-Q.

About Charles Schwab

The Charles Schwab Corporation (NYSE:SCHW) is a leading provider of
financial services, with more than 335 offices and 10.2 million active
brokerage accounts, 1.5 million corporate retirement plan participants,
1.1 million banking accounts, and $2.78 trillion in client assets as of
December 31, 2016. Through its operating subsidiaries, the company
provides a full range of wealth management, securities brokerage,
banking, money management, custody, and financial advisory services to
individual investors and independent investment advisors. Its
broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, http://www.sipc.org),
and affiliates offer a complete range of investment services and
products including an extensive selection of mutual funds; financial
planning and investment advice; retirement plan and equity compensation
plan services; referrals to independent fee-based investment advisors;
and custodial, operational and trading support for independent,
fee-based investment advisors through Schwab Advisor Services. Its
banking subsidiary, Charles Schwab Bank (member FDIC and an Equal
Housing Lender), provides banking and lending services and products.
More information is available at www.schwab.com
and www.aboutschwab.com.

THE CHARLES SCHWAB CORPORATION

Consolidated Statements of Income

(In millions, except per share amounts)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2016

2015

2016

2015

Net Revenues

Asset management and administration fees (1)

$

801

$

673

$

3,055

$

2,650

Interest revenue

952

726

3,493

2,657

Interest expense

(45

)

(36

)

(171

)

(132

)

Net interest revenue

907

690

3,322

2,525

Trading revenue

202

208

825

866

Other

62

120

271

328

Provision for loan losses

-

-

5

11

Total net revenues

1,972

1,691

7,478

6,380

Expenses Excluding Interest

Compensation and benefits

629

572

2,466

2,241

Professional services

134

119

506

459

Occupancy and equipment

99

93

398

353

Advertising and market development

61

60

265

249

Communications

58

58

237

233

Depreciation and amortization

61

58

234

224

Other

106

86

379

342

Total expenses excluding interest

1,148

1,046

4,485

4,101

Income before taxes on income

824

645

2,993

2,279

Taxes on income

302

229

1,104

832

Net Income

522

416

1,889

1,447

Preferred stock dividends and other (2)

44

38

143

83

Net Income Available to Common Stockholders

$

478

$

378

$

1,746

$

1,364

Weighted-Average Common Shares Outstanding:

Basic

1,329

1,319

1,324

1,315

Diluted

1,341

1,330

1,334

1,327

Earnings Per Common Share:

Basic

$

.36

$

.29

$

1.32

$

1.04

Diluted

$

.36

$

.28

$

1.31

$

1.03

Dividends Declared Per Common Share

$

.07

$

.06

$

.27

$

.24

(1)

Includes fee waivers of $31 and $153 during the fourth quarters of
2016 and 2015, respectively, and $224 and $672 during the twelve
months ended 2016 and 2015, respectively, relating to
Schwab-sponsored money market funds.

Expenses excluding interest as a percentage of average client
assets (annualized)

0.17

%

0.17

%

0.17

%

0.18

%

0.16

%

Clients’ Daily Average Trades (in thousands)

Revenue trades (2)

3

%

9

%

293

268

279

328

285

Asset-based trades (3)

26

%

33

%

106

80

90

101

84

Other trades (4)

4

%

(11

%)

174

195

149

187

168

Total

7

%

6

%

573

543

518

616

537

Average Revenue Per Revenue Trade(2)

(6

%)

(1

%)

$

11.03

$

11.17

$

11.27

$

11.44

$

11.73

(1)

Return on average common stockholders’ equity is calculated using
net income available to common stockholders divided by average
common stockholders’ equity.

(2)

Includes all client trades that generate trading revenue (i.e.,
commission revenue or principal transaction revenue); also known as
DART.

(3)

Includes eligible trades executed by clients who participate in one
or more of the Company’s asset-based pricing relationships.

(4)

Includes all commission-free trades, including Schwab Mutual Fund
OneSource® funds and ETFs, and other proprietary products.

THE CHARLES SCHWAB CORPORATION

Net Interest Revenue Information

(In millions)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2016

2015

2016

2015

Interest

Average

Interest

Average

Interest

Average

Interest

Average

Average

Revenue/

Yield/

Average

Revenue/

Yield/

Average

Revenue/

Yield/

Average

Revenue/

Yield/

Balance

Expense

Rate

Balance

Expense

Rate

Balance

Expense

Rate

Balance

Expense

Rate

Interest-earning assets:

Cash and cash equivalents

$

10,052

$

13

0.51

%

$

9,738

$

7

0.29

%

$

11,143

$

57

0.51

%

$

9,358

$

24

0.26

%

Cash and investments segregated

21,047

28

0.53

%

18,605

10

0.21

%

20,104

93

0.46

%

18,606

31

0.17

%

Broker-related receivables (1)

493

1

0.27

%

243

-

0.08

%

558

1

0.22

%

274

-

0.07

%

Receivables from brokerage clients

15,145

125

3.28

%

15,715

128

3.23

%

15,001

497

3.31

%

15,212

502

3.30

%

Securities available for sale (2)

76,624

247

1.28

%

66,352

175

1.05

%

72,586

883

1.22

%

62,249

629

1.01

%

Securities held to maturity

68,351

396

2.30

%

43,156

271

2.49

%

57,451

1,402

2.44

%

38,280

957

2.50

%

Bank loans

15,148

103

2.71

%

14,345

95

2.63

%

14,715

400

2.72

%

13,973

369

2.64

%

Total interest-earning assets

206,860

913

1.76

%

168,154

686

1.62

%

191,558

3,333

1.74

%

157,952

2,512

1.59

%

Other interest revenue

39

40

160

145

Total interest-earning assets

$

206,860

$

952

1.83

%

$

168,154

$

726

1.71

%

$

191,558

$

3,493

1.82

%

$

157,952

$

2,657

1.68

%

Funding sources:

Bank deposits

$

154,357

$

11

0.03

%

$

122,054

$

7

0.02

%

$

141,432

$

37

0.03

%

$

113,464

$

29

0.03

%

Payables to brokerage clients (1)

27,141

1

0.01

%

25,813

-

0.01

%

26,311

3

0.01

%

25,651

2

0.01

%

Short-term borrowings (1,3)

2,429

3

0.49

%

16

-

0.41

%

1,864

9

0.48

%

21

-

0.27

%

Long-term debt (4)

2,876

26

3.60

%

2,959

25

3.35

%

2,876

104

3.62

%

2,717

92

3.39

%

Total interest-bearing liabilities (4)

186,803

41

0.09

%

150,842

32

0.08

%

172,483

153

0.09

%

141,853

123

0.09

%

Non-interest-bearing funding sources (3)

20,057

17,312

19,075

16,099

Other interest expense

4

4

18

9

Total funding sources

$

206,860

$

45

0.09

%

$

168,154

$

36

0.08

%

$

191,558

$

171

0.09

%

$

157,952

$

132

0.08

%

Net interest revenue

$

907

1.74

%

$

690

1.63

%

$

3,322

1.73

%

$

2,525

1.60

%

(1)

Interest revenue or expense was less than $500,000 in the period or
periods presented.

(2)

Amounts have been calculated based on amortized cost.

(3)

Certain prior-period amounts have been reclassified to conform to
the 2016 presentation.

(4)

Adjusted for the retrospective adoption of Accounting Standards
Update 2015-03, which decreased long-term debt and total
interest-bearing liabilities by an immaterial amount.

THE CHARLES SCHWAB CORPORATION

Asset Management and Administration Fees Information

(In millions)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2016

2015

2016

2015

Average

Average

Average

Average

Client

Average

Client

Average

Client

Average

Client

Average

Assets

Revenue

Fee

Assets

Revenue

Fee

Assets

Revenue

Fee

Assets

Revenue

Fee

Schwab money market funds before fee waivers

$

162,207

$

238

0.58

%

$

162,437

$

241

0.59

%

$

164,120

$

962

0.59

%

$

161,381

$

947

0.59

%

Fee waivers

(31

)

(153

)

(224

)

(672

)

Schwab money market funds

162,207

207

0.51

%

162,437

88

0.21

%

164,120

738

0.45

%

161,381

275

0.17

%

Schwab equity and bond funds and ETFs

125,814

57

0.18

%

105,935

54

0.20

%

115,849

217

0.19

%

102,486

217

0.21

%

Mutual Fund OneSource ®

198,289

168

0.34

%

212,409

182

0.34

%

199,389

676

0.34

%

225,347

764

0.34

%

Other third-party mutual funds and ETFs (1)

264,703

59

0.09

%

248,659

53

0.08

%

254,584

222

0.09

%

251,491

223

0.09

%

Total mutual funds and ETFs (2)

$

751,013

491

0.26

%

$

729,440

377

0.21

%

$

733,942

1,853

0.25

%

$

740,705

1,479

0.20

%

Advice solutions (2) :

Fee-based

$

184,007

237

0.51

%

$

171,577

225

0.52

%

$

177,409

915

0.52

%

$

172,302

898

0.52

%

Intelligent Portfolios

11,119

-

-

4,891

-

-

8,377

-

-

3,274

-

-

Legacy Non-Fee

17,174

-

-

16,135

-

-

16,969

-

-

16,463

-

-

Total advice solutions

$

212,300

237

0.44

%

$

192,603

225

0.46

%

$

202,755

915

0.45

%

$

192,039

898

0.47

%

Other balance-based fees (3)

349,610

59

0.07

%

328,982

57

0.07

%

339,071

235

0.07

%

324,701

226

0.07

%

Other (4)

14

14

52

47

Total asset management and administration fees

$

801

$

673

$

3,055

$

2,650

Note: Beginning in the fourth quarter of 2015, certain changes
have been made to the above categorizations of both balances and
revenues in order to provide improved insight into asset
management and administration fee drivers. Prior period
information has been recast to reflect these changes.

Includes various asset-based fees, such as trust fees, 401(k)
recordkeeping fees, and mutual fund clearing fees and other service
fees.

(4)

Includes miscellaneous service and transaction fees relating to
mutual funds and ETFs that are not balance-based.

THE CHARLES SCHWAB CORPORATION

Growth in Client Assets and Accounts

(Unaudited)

Q4-16 % Change

2016

2015

vs.

vs.

Fourth

Third

Second

First

Fourth

(In billions, at quarter end, except as noted)

Q4-15

Q3-16

Quarter

Quarter

Quarter

Quarter

Quarter

Assets in client accounts

Schwab One®, certain cash equivalents and bank deposits

23

%

9

%

$

197.4

$

181.1

$

168.4

$

166.4

$

161.1

Proprietary mutual funds (Schwab Funds® and Laudus Funds®):

Money market funds

(2

%)

2

%

163.5

160.3

161.0

167.4

166.1

Equity and bond funds (1)

6

%

2

%

66.1

64.6

62.8

62.1

62.4

Total proprietary mutual funds

-

2

%

229.6

224.9

223.8

229.5

228.5

Mutual Fund Marketplace®(2)

Mutual Fund OneSource®

(4

%)

(3

%)

198.9

206.1

203.4

203.8

207.7

Mutual fund clearing services

5

%

(1

%)

196.6

198.8

192.0

186.3

186.5

Other third-party mutual funds

12

%

-

558.2

556.1

529.7

510.7

496.4

Total Mutual Fund Marketplace

7

%

(1

%)

953.7

961.0

925.1

900.8

890.6

Total mutual fund assets

6

%

-

1,183.3

1,185.9

1,148.9

1,130.3

1,119.1

Exchange-traded funds (ETFs)

Proprietary ETFs (1)

51

%

11

%

59.8

53.9

47.9

42.9

39.7

ETF OneSource™ (2)

32

%

5

%

21.2

20.2

19.0

17.5

16.1

Other third-party ETFs

15

%

3

%

238.3

230.8

220.5

211.5

207.4

Total ETF assets

21

%

5

%

319.3

304.9

287.4

271.9

263.2

Equity and other securities

11

%

3

%

886.5

860.3

830.7

808.5

799.0

Fixed income securities

11

%

-

208.3

208.0

202.0

194.1

187.2

Margin loans outstanding

(3

%)

3

%

(15.3

)

(14.9

)

(15.4

)

(14.5

)

(15.8

)

Total client assets

11

%

2

%

$

2,779.5

$

2,725.3

$

2,622.0

$

2,556.7

$

2,513.8

Client assets by business

Investor Services

10

%

2

%

$

1,495.4

$

1,470.8

$

1,415.5

$

1,377.3

$

1,358.6

Advisor Services

11

%

2

%

1,284.1

1,254.5

1,206.5

1,179.4

1,155.2

Total client assets

11

%

2

%

$

2,779.5

$

2,725.3

$

2,622.0

$

2,556.7

$

2,513.8

Net growth in assets in client accounts (for the quarter
ended)

Net new assets by business

Investor Services (3)

(37

%)

(4

%)

$

13.7

$

14.2

$

14.8

$

15.7

$

21.6

Advisor Services

9

%

47

%

23.2

15.8

11.8

16.3

21.3

Total net new assets

(14

%)

23

%

$

36.9

$

30.0

$

26.6

$

32.0

$

42.9

Net market gains

(69

%)

(76

%)

17.3

73.3

38.7

10.9

55.0

Net growth

(45

%)

(48

%)

$

54.2

$

103.3

$

65.3

$

42.9

$

97.9

New brokerage accounts (in thousands, for the quarter ended)

12

%

11

%

293

264

271

265

262

Clients (in thousands)

Active Brokerage Accounts

4

%

1

%

10,155

10,046

9,977

9,869

9,769

Banking Accounts

7

%

2

%

1,106

1,088

1,065

1,047

1,033

Corporate Retirement Plan Participants

2

%

(1

%)

1,543

1,561

1,553

1,532

1,519

(1)

Includes proprietary equity and bond funds and ETFs held on and off
the Schwab platform. As of December 31, 2016, off-platform equity
and bond funds and ETFs were $7.8 billion and $12.7 billion,
respectively.

(2)

Excludes all proprietary mutual funds and ETFs.

(3)

Second quarter of 2016 includes an inflow of $2.7 billion from a
mutual fund clearing services client. Fourth quarter of 2015
includes an inflow of $10.2 billion from a mutual fund clearing
services client.

The Charles Schwab Corporation Monthly Activity Report For
December 2016

2015

2016

Change

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Mo.

Yr.

Market Indices

(at month end)

Dow Jones Industrial Average

17,425

16,466

16,517

17,685

17,774

17,787

17,930

18,432

18,401

18,308

18,142

19,124

19,763

3%

13%

Nasdaq Composite

5,007

4,614

4,558

4,870

4,775

4,948

4,843

5,162

5,213

5,312

5,189

5,324

5,383

1%

8%

Standard & Poor’s 500

2,044

1,940

1,932

2,060

2,065

2,097

2,099

2,174

2,171

2,168

2,126

2,199

2,239

2%

10%

Client Assets

(in billions of dollars)

Beginning Client Assets

2,553.3

2,513.8

2,428.3

2,433.6

2,556.7

2,576.2

2,607.2

2,622.0

2,698.2

2,710.4

2,725.3

2,686.7

2,734.6

Net New Assets (1)

15.2

8.1

10.9

13.0

1.3

16.0

9.3

9.0

10.4

10.6

6.1

11.9

18.9

59%

24%

Net Market (Losses) Gains

(54.7

)

(93.6

)

(5.6

)

110.1

18.2

15.0

5.5

67.2

1.8

4.3

(44.7

)

36.0

26.0

Total Client Assets (at month end)

2,513.8

2,428.3

2,433.6

2,556.7

2,576.2

2,607.2

2,622.0

2,698.2

2,710.4

2,725.3

2,686.7

2,734.6

2,779.5

2%

11%

Receiving Ongoing Advisory Services

(at month end)

Investor Services

192.6

187.3

187.9

197.9

200.3

202.7

205.0

210.2

211.7

213.4

211.3

213.2

217.1

2%

13%

Advisor Services (2)

1,061.1

1,029.9

1,032.3

1,084.0

1,093.2

1,103.7

1,110.5

1,142.3

1,149.4

1,155.4

1,140.5

1,161.8

1,184.3

2%

12%

Client Accounts

(at month end, in thousands)

Active Brokerage Accounts

9,769

9,792

9,826

9,869

9,916

9,948

9,977

9,989

10,021

10,046

10,068

10,102

10,155

1%

4%

Banking Accounts

1,033

1,039

1,045

1,047

1,053

1,060

1,065

1,074

1,083

1,088

1,092

1,099

1,106

1%

7%

Corporate Retirement Plan Participants

1,519

1,518

1,523

1,532

1,532

1,555

1,553

1,559

1,565

1,561

1,547

1,550

1,543

-

2%

Client Activity

New Brokerage Accounts (in thousands)

98

83

84

98

103

81

87

84

96

84

84

93

116

25%

18%

Inbound Calls (in thousands)

1,844

1,736

1,737

1,902

1,867

1,554

1,665

1,605

1,755

1,633

1,565

1,642

1,931

18%

5%

Web Logins (in thousands)

32,156

33,268

33,283

38,078

37,854

38,000

43,220

46,217

42,627

38,237

35,429

37,687

40,720

8%

27%

Client Cash as a Percentage of Client Assets (3)

13.0

%

13.7

%

13.7

%

13.1

%

12.8

%

12.7

%

12.6

%

12.5

%

12.5

%

12.5

%

12.8

%

12.8

%

13.0

%

20 bp

-

Mutual Fund and Exchange-Traded Fund

Net Buys (Sells) (4, 5)

(in millions of dollars)

Large Capitalization Stock

451

(162

)

(212

)

(462

)

(857

)

(799

)

185

(1,173

)

(755

)

(1,209

)

(652

)

200

565

Small / Mid Capitalization Stock

(572

)

(952

)

58

685

(86

)

(272

)

(113

)

(320

)

(214

)

460

(190

)

877

1,103

International

(918

)

469

(28

)

833

324

(207

)

(1,208

)

(347

)

386

(26

)

(1

)

348

(683

)

Specialized

(495

)

(668

)

260

191

815

265

470

357

189

(274

)

(159

)

(1,019

)

20

Hybrid

(1,361

)

(377

)

38

281

14

1,133

(403

)

(463

)

(219

)

58

(432

)

(687

)

(456

)

Taxable Bond

(4,020

)

99

546

1,628

1,098

1,526

1,421

1,420

1,888

1,585

1,475

(1,110

)

1,045

Tax-Free Bond

731

379

641

949

479

940

700

766

920

539

20

(1,090

)

(1,692

)

Net Buy (Sell) Activity

(in millions of dollars)

Mutual Funds (4)

(10,988

)

(1,215

)

197

1,769

(207

)

620

(2,049

)

(1,683

)

(297

)

(656

)

(1,979

)

(5,864

)

(5,825

)

Exchange-Traded Funds (5)

4,804

3

1,106

2,336

1,994

1,966

3,101

1,923

2,492

1,789

2,040

3,383

5,727

Money Market Funds

4,538

1,994

1,359

(2,101

)

(3,959

)

(738

)

(1,799

)

701

(768

)

(658

)

211

1,851

1,141

Average Interest-Earning Assets (6)

(in millions of dollars)

172,334

177,332

178,610

181,529

183,341

184,432

187,933

191,850

194,268

199,107

201,894

206,970

212,052

2%

23%

(1)

May 2016 includes an inflow of $2.7 billion from a mutual fund
clearing services client.